VANCOUVER, BC (JANUARY 16TH, 2014)...GLOBAL COBALT CORP. (TSXV:GCO) ("Global Cobalt" and/or the "Company") (TSXV:GCO) is pleased to announce the release of the following Report to Shareholders by Ms. Erin Chutter, President and Chief Executive Officer:
2013 was a transformative year for Global Cobalt. Despite uncertainty in the mining industry and capital markets, Global Cobalt remained focused on driving forward and creating value from its outstanding land position in the Altai Republic, Russia. The Company has amassed an exceptional package of cobalt and strategic metal assets and the corporate and exploration groundwork laid in 2013 is just now beginning to reveal their true potential. Further, the Company has been extremely fortunate to receive investor attention through tumultuous markets and has raised capital throughout the year to continue advancing its corporate strategy. Our team is incredibly proud of the progress it has been able to achieve over the past year and we stand confident that we are on track to achieve our primary goal of supplying the growing need for cobalt to the world's markets.
The Company met its aggressive drilling schedule with the completion of a 45-hole, 7,398 metre drill program, the results of which will facilitate the preparation of a National Instrument 43-101 compliant resource for the Karakul project, providing a key metric for long term project feasibility. To date, the results from the first seven holes reported correlate very well with, and verify historic Soviet-era drill hole results, and most importantly confirmed the validity of the Karakul Cobalt Project. Additionally, new mineralized zones were discovered and promising silver and tungsten values were returned. Looking forward, the Company will continue to receive additional assay results from the outstanding drill holes sampled. These will further the understanding of the scope of the deposit.
Although we are in midst of unusually challenging times in the capital markets, we have been able to continue to operate over the past year due to the strong support of our loyal shareholder base as well as our management team and Board. In 2013, Global Cobalt announced three separate warrant exercises demonstrating significant shareholder support in the Company, the management team and the Company's commitment to advancing the Karakul Cobalt Project. The Company also closed on a number of private placements and arranged for funding that fully satisfied the 2013 drill program and work campaign at Karakul. In total the Company raised in excess of $5.9 million in 2013 not including the recently announced closing of an over-subscribed private placement priced at a premium to the market for over $2.97 million.
Further, the Company has also begun work with a number of critical partners in preparation for making the important decisions related to project development and construction. Global Cobalt announced our agreement with China's top battery material supplier, Beijing Easpring Material Technology Co., Ltd. ("Easpring"). The Agreement provides our Company the right to sell to Easpring up to 100% of the total crude cobalt hydroxide, cobalt concentrate or cobalt carbonate production from the Karakul Cobalt Project for an initial term of 10 years from the commencement of commercial production at market competitive prices, and in addition, the Agreement also allows for Easpring to participate in future mine project financing. We also awarded a Feasibility Study to Beijing General Research Institute of Mining & Metallurgy ("BGRIMM"), a leading global mining consultancy. BGRIMM will work closely with Global Cobalt to complete an internal Feasibility Study, which will be used to define the technical and economic parameters of the Project to assist with assessing a potential production and funding decision.
In addition to our near term mining plans at the Karakul Cobalt Project, one of Global Cobalt's strategic advantages rests in the Altai Sister Properties (the "Altai Sisters"), a collection of assets that covers prospective ground in a westerly arc north of Karakul. Although the primary development focus remains on the Karakul deposit, we believe that these offer tremendous upside potential and in some cases extensions of mineralization. Global Cobalt envisions advancing this newly assembled portfolio of highly prospective projects into a new mining jurisdiction focused on cobalt and other strategic metals. Initial analysis of the historic drilling results, along with a geophysical review indicates that the Altai Sisters have the potential to add dramatically to the Company's future resources.
While having a strategic project portfolio is key, even more important, is having a team of professionals to recognize what it takes to unlock the value within those projects. Global Cobalt has benefited tremendously from them team of seasoned industry professionals and managers, it has attracted. In 2013, we strengthened the senior management operational and technical team with the addition of Dr. Michael Hitch as Chief Operating Officer and Mr. Paul Sarjeant as VP Exploration. Messrs. Jaime Stallwood and Graham Abbott have been instrumental in communicating to shareholders as managers of Investor Relations, since joining the team.
At the Board level, the Company also added to the existing strength, depth, and combined experience with the addition of four new directors: Mr. Gaston Reymenants, Mr. Kamen Zahariev, Mr. Alexander Ordanian and, Mr. Peter Reynolds.
Finally, I would like to thank our many loyal shareholders, who share our vision and are confident in, and support our leadership team, as we continue to build a new cobalt and strategic metals mining district in the crossroads of Central Asia. We look forward to developing long-term, sustainable value for our shareholders and partners.
Erin Chutter, President & CEO
Global Cobalt Corporation:
Global Cobalt Corporation is a Canada-based strategic metals company focused on the development of a new mining region in the Republic of Altai. Global Cobalt will build upon the success of the Altai Projects while aggressively expanding and exploring existing properties to meet the demand for cobalt and other strategic metals.
For Further Information:
Mr. Mitchell Smith, Corporate Development
Suite 1510-1050 West Pender Street
Vancouver, BC V6E 3T4
Tel: +1 (604) 688-4219
Fax: +1 (604) 688-4215
TSXV:GCO; FRA:3P0; CUSIP:37890F
Cautionary Statement on Forward-Looking Information: The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Leave a comment...